Lease Finance Deals News

Shipping accountant Moore Stephens says draft proposals on the new U.K. tonnage tax regime lack the flexibility shipowners need for timing acquisitions and sales of ships. It also warns that the draft legislation contains a very broad anti-avoidance clause that could cause companies to unintentionally breach the detailed rules of the tonnage tax scheme. Balancing charges will not crystallize on entry. However, they may arise when vessels are sold, although they will be phased out. "The new rules on the deferment of balancing charges appear to be harsher than the existing regime," says Sue Bill, shipping tax manager at Moore Stephens. "Shipowners will have only one year before and two after the sale of a ship as a period of grace for deferring balancing charges, as opposed to six years now.

Shipping accountant Moore Stephens says draft proposals on the new U.K. tonnage tax regime lack the flexibility shipowners need for timing acquisitions and sales of ships. It also warns that the draft legislation contains a very broad anti-avoidance clause that could cause companies to unintentionally breach the detailed rules of the tonnage tax scheme. Balancing charges will not crystallize on entry. However, they may arise when vessels are sold, although they will be phased out. "The new rules on the deferment of balancing charges appear to be harsher than the existing regime," says Sue Bill, shipping tax manager at Moore Stephens. "Shipowners will have only one year before and two after the sale of a ship as a period of grace for deferring balancing charges, as opposed to six years now.